| Putnam International Equity Fund | ||||||
| The fund's portfolio | ||||||
| 3/31/21 (Unaudited) | ||||||
| COMMON STOCKS (99.2%)(a) | ||||||
| Shares | Value | |||||
| Australia (2.0%) | ||||||
| BHP Billiton, Ltd. | 491,053 | $16,986,119 | ||||
| 16,986,119 | ||||||
| Canada (1.1%) | ||||||
| Cenovus Energy, Inc. | 1,205,200 | 9,053,146 | ||||
| 9,053,146 | ||||||
| Denmark (3.2%) | ||||||
| A. P. Moeller-Maersck A/S | 5,293 | 12,295,330 | ||||
| Orsted AS | 89,340 | 14,429,327 | ||||
| 26,724,657 | ||||||
| France (10.8%) | ||||||
| AXA SA | 567,811 | 15,238,480 | ||||
| BNP Paribas SA(NON) | 248,290 | 15,105,883 | ||||
| Compagnie De Saint-Gobain(NON) | 281,413 | 16,606,256 | ||||
| Compagnie Generale des Etablissements Michelin SCA | 59,826 | 8,955,662 | ||||
| Schneider Electric SA | 127,312 | 19,446,167 | ||||
| Thales SA | 167,470 | 16,638,337 | ||||
| 91,990,785 | ||||||
| Germany (9.6%) | ||||||
| adidas AG(NON) | 42,805 | 13,362,554 | ||||
| Auto1 Group SE 144A(NON) | 198,498 | 11,254,846 | ||||
| Brenntag AG | 172,220 | 14,702,862 | ||||
| Deutsche Boerse AG | 90,826 | 15,092,701 | ||||
| HC Brillant Services GmbH (acquired various dates from 8/2/13 to 8/31/16, cost $20) (Private)(F)(RES)(NON) | 30 | 26 | ||||
| Merck KGaA | 84,317 | 14,416,492 | ||||
| Zalando SE(NON) | 131,564 | 12,904,407 | ||||
| 81,733,888 | ||||||
| Greece (0.9%) | ||||||
| OPAP SA | 567,092 | 7,667,782 | ||||
| 7,667,782 | ||||||
| Hong Kong (2.5%) | ||||||
| AIA Group, Ltd. | 1,739,600 | 21,163,107 | ||||
| 21,163,107 | ||||||
| India (1.8%) | ||||||
| Reliance Industries, Ltd. 144A | 272,671 | 15,078,706 | ||||
| 15,078,706 | ||||||
| Ireland (4.0%) | ||||||
| Bank of Ireland Group PLC(NON) | 1,459,895 | 7,241,840 | ||||
| CRH PLC | 272,619 | 12,778,421 | ||||
| Flutter Entertainment PLC | 65,117 | 13,918,876 | ||||
| 33,939,137 | ||||||
| Italy (3.2%) | ||||||
| Moncler SpA(NON) | 208,548 | 11,951,854 | ||||
| Nexi SpA(NON) | 896,576 | 15,645,050 | ||||
| 27,596,904 | ||||||
| Japan (18.9%) | ||||||
| Asahi Group Holdings, Ltd. | 378,400 | 16,022,668 | ||||
| GMO internet, Inc. | 110,200 | 3,193,741 | ||||
| Hoya Corp. | 107,800 | 12,696,775 | ||||
| Japan Exchange Group, Inc. | 547,000 | 12,857,488 | ||||
| MinebeaMitsumi, Inc. | 617,300 | 15,871,435 | ||||
| Nabtesco Corp. | 267,300 | 12,287,360 | ||||
| PALTAC Corp. | 202,400 | 10,973,522 | ||||
| Panasonic Corp. | 604,000 | 7,803,443 | ||||
| Renesas Electronics Corp.(NON) | 1,144,000 | 12,566,801 | ||||
| SBI Holdings, Inc. | 403,600 | 10,983,238 | ||||
| Secom Co., Ltd. | 144,200 | 12,174,817 | ||||
| Sony Corp. | 204,600 | 21,540,584 | ||||
| Yamaha Motor Co., Ltd. | 468,200 | 11,570,057 | ||||
| 160,541,929 | ||||||
| Netherlands (3.3%) | ||||||
| Adyen NV(NON) | 3,010 | 6,719,025 | ||||
| Akzo Nobel NV | 105,519 | 11,790,150 | ||||
| QIAGEN NV(NON) | 205,795 | 9,959,928 | ||||
| 28,469,103 | ||||||
| Norway (1.0%) | ||||||
| DNB ASA | 387,832 | 8,252,565 | ||||
| 8,252,565 | ||||||
| Portugal (1.5%) | ||||||
| Energias de Portugal (EDP) SA | 2,235,180 | 12,765,223 | ||||
| 12,765,223 | ||||||
| Russia (1.3%) | ||||||
| Sberbank of Russia PJSC ADR | 696,352 | 10,727,303 | ||||
| 10,727,303 | ||||||
| South Korea (5.2%) | ||||||
| Hana Financial Group, Inc. | 342,965 | 12,939,781 | ||||
| LG Chemical, Ltd. | 16,115 | 11,521,206 | ||||
| Samsung Electronics Co., Ltd. (Preference) | 214,313 | 13,865,643 | ||||
| SK Telecom Co., Ltd. | 25,489 | 6,208,360 | ||||
| 44,534,990 | ||||||
| Spain (1.8%) | ||||||
| CaixaBank SA | 4,813,525 | 14,896,682 | ||||
| 14,896,682 | ||||||
| Sweden (0.2%) | ||||||
| Fingerprint Cards AB Class B(NON) | 554,167 | 1,849,666 | ||||
| 1,849,666 | ||||||
| Switzerland (7.9%) | ||||||
| ABB, Ltd. | 493,832 | 14,922,332 | ||||
| Coca-Cola HBC AG | 502,190 | 15,992,562 | ||||
| Lonza Group AG | 23,954 | 13,391,836 | ||||
| SIG Combibloc Group AG | 544,824 | 12,601,018 | ||||
| UBS Group AG(NON) | 679,363 | 10,519,470 | ||||
| 67,427,218 | ||||||
| Taiwan (2.9%) | ||||||
| Lite-On Technology Corp. | 3,024,000 | 6,687,518 | ||||
| Novatek Microelectronics Corp. | 288,000 | 5,868,339 | ||||
| Taiwan Semiconductor Manufacturing Co., Ltd. | 600,000 | 12,476,049 | ||||
| 25,031,906 | ||||||
| United Arab Emirates (1.1%) | ||||||
| Network International Holdings PLC(NON) | 1,575,187 | 8,981,537 | ||||
| 8,981,537 | ||||||
| United Kingdom (12.3%) | ||||||
| Abcam PLC | 451,918 | 8,666,121 | ||||
| Anglo American PLC | 361,468 | 14,164,731 | ||||
| CNH Industrial NV(NON) | 701,101 | 10,848,680 | ||||
| Diageo PLC | 455,748 | 18,782,843 | ||||
| Kingfisher PLC(NON) | 2,623,937 | 11,514,049 | ||||
| Liberty Global PLC Class C(NON) | 647,500 | 16,537,150 | ||||
| Prudential PLC | 810,523 | 17,213,336 | ||||
| Unilever PLC | 127,359 | 7,106,258 | ||||
| 104,833,168 | ||||||
| United States (2.7%) | ||||||
| Linde PLC | 35,671 | 9,993,517 | ||||
| Otis Worldwide Corp. | 185,800 | 12,718,015 | ||||
| 22,711,532 | ||||||
| Total common stocks (cost $710,762,213) | $842,957,053 | |||||
| SHORT-TERM INVESTMENTS (0.9%)(a) | ||||||
| Principal amount/ shares | Value | |||||
| Putnam Short Term Investment Fund 0.09%(AFF) | Shares | 2,116,642 | $2,116,642 | |||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.04%(P) | Shares | 930,000 | 930,000 | |||
| U.S. Treasury Bills 0.077%, 5/13/21(SEGSF) | $600,000 | 599,984 | ||||
| U.S. Treasury Bills 0.082%, 4/8/21(SEGSF) | 100,000 | 100,000 | ||||
| U.S. Treasury Bills 0.086%, 5/6/21(SEGSF) | 100,000 | 99,998 | ||||
| U.S. Treasury Bills 0.054%, 6/3/21(SEGSF) | 500,000 | 499,985 | ||||
| U.S. Treasury Bills 0.038%, 6/10/21(SEGSF) | 400,000 | 399,987 | ||||
| U.S. Treasury Cash Management Bills 0.039%, 6/1/21(SEGSF) | 700,000 | 699,982 | ||||
| U.S. Treasury Cash Management Bills 0.033%, 6/29/21(SEGSF) | 1,200,000 | 1,199,970 | ||||
| U.S. Treasury Cash Management Bills 0.011%, 7/6/21(SEGSF) | 700,000 | 699,976 | ||||
| U.S. Treasury Cash Management Bills 0.019%, 7/27/21(SEGSF) | 100,000 | 99,994 | ||||
| Total short-term investments (cost $7,446,335) | $7,446,518 | |||||
| TOTAL INVESTMENTS | ||||||
| Total investments (cost $718,208,548) | $850,403,571 | |||||
| FORWARD CURRENCY CONTRACTS at 3/31/21 (aggregate face value $591,746,115) (Unaudited) | |||||||
| Counterparty | Currency | Contract type* | Delivery date | Value | Aggregate face value | Unrealized appreciation/ (depreciation) | |
| Bank of America N.A. | |||||||
| Australian Dollar | Sell | 4/21/21 | $532,114 | $553,851 | $21,737 | ||
| British Pound | Buy | 6/16/21 | 6,138,981 | 6,225,639 | (86,658) | ||
| Canadian Dollar | Sell | 4/21/21 | 1,209,655 | 1,199,262 | (10,393) | ||
| Euro | Buy | 6/16/21 | 3,393,003 | 3,438,199 | (45,196) | ||
| Japanese Yen | Buy | 5/19/21 | 44,595,369 | 47,057,004 | (2,461,635) | ||
| Swedish Krona | Buy | 6/16/21 | 2,895,577 | 2,950,808 | (55,231) | ||
| Barclays Bank PLC | |||||||
| Canadian Dollar | Sell | 4/21/21 | 3,358,641 | 3,330,516 | (28,125) | ||
| Euro | Sell | 6/16/21 | 12,549,412 | 12,719,076 | 169,664 | ||
| Hong Kong Dollar | Buy | 5/20/21 | 3,031,727 | 3,040,728 | (9,001) | ||
| Japanese Yen | Buy | 5/19/21 | 465,115 | 493,701 | (28,586) | ||
| Swedish Krona | Buy | 6/16/21 | 61,322 | 62,874 | (1,552) | ||
| Citibank, N.A. | |||||||
| Australian Dollar | Buy | 4/21/21 | 8,409,084 | 8,562,316 | (153,232) | ||
| British Pound | Sell | 6/16/21 | 6,831,187 | 6,930,480 | 99,293 | ||
| Canadian Dollar | Buy | 4/21/21 | 9,681,458 | 9,600,395 | 81,063 | ||
| Chinese Yuan (Offshore) | Sell | 5/20/21 | 5,762,126 | 5,830,541 | 68,415 | ||
| Danish Krone | Sell | 6/16/21 | 4,376,903 | 4,493,309 | 116,406 | ||
| Euro | Buy | 6/16/21 | 6,142,051 | 6,224,655 | (82,604) | ||
| Hong Kong Dollar | Buy | 5/20/21 | 3,335,399 | 3,344,219 | (8,820) | ||
| Japanese Yen | Buy | 5/19/21 | 5,808,826 | 6,130,738 | (321,912) | ||
| New Zealand Dollar | Buy | 4/21/21 | 40,018 | 41,588 | (1,570) | ||
| Swedish Krona | Buy | 6/16/21 | 89,049 | 91,326 | (2,277) | ||
| Goldman Sachs International | |||||||
| Australian Dollar | Sell | 4/21/21 | 131,263 | 134,433 | 3,170 | ||
| British Pound | Buy | 6/16/21 | 9,129,944 | 9,256,541 | (126,597) | ||
| Chinese Yuan (Offshore) | Sell | 5/20/21 | 5,128,301 | 5,189,485 | 61,184 | ||
| Euro | Buy | 6/16/21 | 3,422,952 | 3,468,698 | (45,746) | ||
| Japanese Yen | Sell | 5/19/21 | 4,839,128 | 5,119,087 | 279,959 | ||
| HSBC Bank USA, National Association | |||||||
| Australian Dollar | Buy | 4/21/21 | 8,132,810 | 8,337,596 | (204,786) | ||
| British Pound | Buy | 6/16/21 | 31,129,123 | 31,556,887 | (427,764) | ||
| Chinese Yuan (Offshore) | Buy | 5/20/21 | 689,289 | 697,517 | (8,228) | ||
| Euro | Buy | 6/16/21 | 2,193,061 | 2,222,063 | (29,002) | ||
| Hong Kong Dollar | Buy | 5/20/21 | 2,023,840 | 2,029,792 | (5,952) | ||
| Japanese Yen | Sell | 5/19/21 | 4,195,457 | 4,349,577 | 154,120 | ||
| Swedish Krona | Buy | 6/16/21 | 48,936 | 50,203 | (1,267) | ||
| Swiss Franc | Buy | 6/16/21 | 2,858,188 | 2,906,150 | (47,962) | ||
| JPMorgan Chase Bank N.A. | |||||||
| Australian Dollar | Buy | 4/21/21 | 4,607,863 | 4,724,383 | (116,520) | ||
| British Pound | Buy | 6/16/21 | 3,915,512 | 3,906,307 | 9,205 | ||
| Canadian Dollar | Sell | 4/21/21 | 3,066,592 | 3,041,391 | (25,201) | ||
| Euro | Buy | 6/16/21 | 20,503,884 | 20,780,408 | (276,524) | ||
| Hong Kong Dollar | Sell | 5/20/21 | 89,899 | 90,163 | 264 | ||
| Japanese Yen | Sell | 5/19/21 | 7,996,708 | 8,438,265 | 441,557 | ||
| New Zealand Dollar | Buy | 4/21/21 | 1,712,233 | 1,779,839 | (67,606) | ||
| Norwegian Krone | Buy | 6/16/21 | 129,515 | 130,053 | (538) | ||
| Singapore Dollar | Buy | 5/19/21 | 8,749,839 | 8,830,127 | (80,288) | ||
| South Korean Won | Sell | 5/20/21 | 42,339,326 | 42,870,751 | 531,425 | ||
| Swedish Krona | Buy | 6/16/21 | 9,584,222 | 9,827,087 | (242,865) | ||
| Morgan Stanley & Co. International PLC | |||||||
| Australian Dollar | Buy | 4/21/21 | 96,244 | 98,660 | (2,416) | ||
| British Pound | Buy | 6/16/21 | 6,453,783 | 6,541,884 | (88,101) | ||
| Canadian Dollar | Sell | 4/21/21 | 6,137,084 | 6,092,492 | (44,592) | ||
| Euro | Sell | 6/16/21 | 10,334,859 | 10,471,615 | 136,756 | ||
| Japanese Yen | Sell | 5/19/21 | 6,437,099 | 6,748,021 | 310,922 | ||
| New Zealand Dollar | Buy | 4/21/21 | 1,334,127 | 1,373,662 | (39,535) | ||
| Norwegian Krone | Sell | 6/16/21 | 2,595,973 | 2,606,106 | 10,133 | ||
| Swedish Krona | Buy | 6/16/21 | 88,809 | 91,080 | (2,271) | ||
| Swiss Franc | Buy | 6/16/21 | 8,921,105 | 9,193,631 | (272,526) | ||
| NatWest Markets PLC | |||||||
| Australian Dollar | Sell | 4/21/21 | 2,611,730 | 2,677,687 | 65,957 | ||
| British Pound | Buy | 6/16/21 | 248,477 | 252,161 | (3,684) | ||
| Canadian Dollar | Sell | 4/21/21 | 6,549,056 | 6,524,079 | (24,977) | ||
| Euro | Sell | 6/16/21 | 11,589,647 | 11,752,346 | 162,699 | ||
| Hong Kong Dollar | Sell | 5/20/21 | 2,358,323 | 2,365,269 | 6,946 | ||
| Japanese Yen | Sell | 5/19/21 | 5,024,749 | 5,302,384 | 277,635 | ||
| Swedish Krona | Buy | 6/16/21 | 7,406,298 | 7,594,924 | (188,626) | ||
| Swiss Franc | Sell | 6/16/21 | 1,646,305 | 1,703,622 | 57,317 | ||
| State Street Bank and Trust Co. | |||||||
| Australian Dollar | Sell | 4/21/21 | 2,093,593 | 2,128,567 | 34,974 | ||
| British Pound | Buy | 6/16/21 | 181,324 | 180,178 | 1,146 | ||
| Canadian Dollar | Buy | 4/21/21 | 5,018,863 | 4,959,215 | 59,648 | ||
| Chinese Yuan (Offshore) | Buy | 5/20/21 | 13,285,166 | 13,442,243 | (157,077) | ||
| Euro | Sell | 6/16/21 | 24,531,209 | 24,840,454 | 309,245 | ||
| Hong Kong Dollar | Buy | 5/20/21 | 71,168 | 71,374 | (206) | ||
| Israeli Shekel | Buy | 4/21/21 | 5,070,042 | 5,338,705 | (268,663) | ||
| Japanese Yen | Buy | 5/19/21 | 15,513,511 | 16,370,252 | (856,741) | ||
| New Zealand Dollar | Buy | 4/21/21 | 45,605 | 47,397 | (1,792) | ||
| Swedish Krona | Buy | 6/16/21 | 72,138 | 73,965 | (1,827) | ||
| Toronto-Dominion Bank | |||||||
| British Pound | Buy | 6/16/21 | 2,745,381 | 2,783,030 | (37,649) | ||
| Canadian Dollar | Sell | 4/21/21 | 8,418,168 | 8,344,982 | (73,186) | ||
| Euro | Sell | 6/16/21 | 3,765,657 | 3,816,651 | 50,994 | ||
| UBS AG | |||||||
| Australian Dollar | Sell | 4/21/21 | 2,136,814 | 2,190,849 | 54,035 | ||
| British Pound | Sell | 6/16/21 | 16,298,686 | 16,523,731 | 225,045 | ||
| Canadian Dollar | Buy | 4/21/21 | 9,672,944 | 9,594,336 | 78,608 | ||
| Chinese Yuan (Offshore) | Buy | 5/20/21 | 120,370 | 121,818 | (1,448) | ||
| Euro | Sell | 6/16/21 | 22,023,512 | 22,278,382 | 254,870 | ||
| Hong Kong Dollar | Buy | 5/20/21 | 746,708 | 748,739 | (2,031) | ||
| Japanese Yen | Buy | 5/19/21 | 4,775,319 | 4,957,509 | (182,190) | ||
| Norwegian Krone | Buy | 6/16/21 | 42,427 | 42,587 | (160) | ||
| Swedish Krona | Buy | 6/16/21 | 4,433,554 | 4,547,762 | (114,208) | ||
| Swiss Franc | Buy | 6/16/21 | 163,358 | 168,353 | (4,995) | ||
| WestPac Banking Corp. | |||||||
| Australian Dollar | Buy | 4/21/21 | 10,164,721 | 10,421,156 | (256,435) | ||
| British Pound | Sell | 6/16/21 | 21,746,289 | 22,070,509 | 324,220 | ||
| Canadian Dollar | Sell | 4/21/21 | 5,301,999 | 5,256,236 | (45,763) | ||
| Euro | Buy | 6/16/21 | 15,354,012 | 15,514,929 | (160,917) | ||
| Japanese Yen | Buy | 5/19/21 | 1,387,950 | 1,464,555 | (76,605) | ||
| Unrealized appreciation | 4,458,612 | ||||||
| Unrealized (depreciation) | (7,912,259) | ||||||
| Total | $(3,453,647) | ||||||
| * | The exchange currency for all contracts listed is the United States Dollar. | ||||||
| Key to holding's abbreviations | ||||||
| ADR | American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank. | |||||
| PJSC | Public Joint Stock Company | |||||
| Notes to the fund's portfolio | ||||||
| Unless noted otherwise, the notes to the fund's portfolio are for the close of the fund's reporting period, which ran from July 1, 2020 through March 31, 2021 (the reporting period). Within the following notes to the portfolio, references to "Putnam Management" represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC, references to "ASC 820" represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures and references to "OTC", if any, represent over-the-counter. | ||||||
| (a) | Percentages indicated are based on net assets of $850,126,620. | |||||
| (NON) | This security is non-income-producing. | |||||
| (RES) | This security is restricted with regard to public resale. The total fair value of this security and any other restricted securities (excluding 144A securities), if any, held at the close of the reporting period was $26, or less than 0.1% of net assets. | |||||
| (AFF) | Affiliated company. For investments in Putnam Short Term Investment Fund, the rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. Transactions during the period with any company which is under common ownership or control were as follows: | |||||
| Name of affiliate | Fair value as of 6/30/20 | Purchase cost | Sale proceeds | Investment income | Shares outstanding and fair value as of 3/31/21 | |
| Short-term investments | ||||||
| Putnam Cash Collateral Pool, LLC*# | $— | $33,194,355 | $33,194,355 | $229 | $— | |
| Putnam Short Term Investment Fund** | 10,152,274 | 217,370,026 | 225,405,658 | 15,106 | 2,116,642 | |
| Total Short-term investments | $10,152,274 | $250,564,381 | $258,600,013 | $15,335 | $2,116,642 | |
| * No management fees are charged to Putnam Cash Collateral Pool, LLC. There were no realized or unrealized gains or losses during the period. | ||||||
| # The fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the fair value of the securities loaned. The fair value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The remaining maturities of the securities lending transactions are considered overnight and continuous. The risk of borrower default will be borne by the fund’s agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC. At the beginning and the close of the reporting period, there were no securities out on loan. | ||||||
| ** Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. There were no realized or unrealized gains or losses during the period. | ||||||
| (SEGSF) | This security, in part or in entirety, was pledged and segregated with the custodian for collateral on certain derivative contracts at the close of the reporting period. Collateral at period end totaled $4,304,800. | |||||
| (F) | This security is valued by Putnam Management at fair value following procedures approved by the Trustees. Securities are classified as Level 3 for ASC 820 based on the securities' valuation inputs. At the close of the reporting period, fair value pricing was also used for certain foreign securities in the portfolio. | |||||
| (P) | This security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. | |||||
| At the close of the reporting period, the fund maintained liquid assets totaling $4,473,217 to cover certain derivative contracts. | ||||||
| Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity. | ||||||
| 144A after the name of an issuer represents securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. | ||||||
| The fund had the following sector concentrations greater than 10% at the close of the reporting period (as a percentage of net assets): | ||||||
| Financials | 20.3% | |||||
| Industrials | 18.6 | |||||
| Consumer discretionary | 16.9 | |||||
| Materials | 10.6 | |||||
| Information technology | 10.3 | |||||
| Security valuation: Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees. The Trustees have formed a Pricing Committee to oversee the implementation of these procedures and have delegated responsibility for valuing the fund’s assets in accordance with these procedures to Putnam Management. Putnam Management has established an internal Valuation Committee that is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Pricing Committee. | ||||||
| Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets, and are classified as Level 1 securities under ASC 820. If no sales are reported, as in the case of some securities that are traded OTC, a security is valued at its last reported bid price and is generally categorized as a Level 2 security. | ||||||
| Investments in open-end investment companies (excluding exchange-traded funds), if any, which can be classified as Level 1 or Level 2 securities, are valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares. | ||||||
| Many securities markets and exchanges outside the U.S. close prior to the scheduled close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the scheduled close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value certain foreign equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. The foreign equity securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. At the close of the reporting period, fair value pricing was used for certain foreign securities in the portfolio. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate. Short-term securities with remaining maturities of 60 days or less are valued using an independent pricing service approved by the Trustees, and are classified as Level 2 securities. | ||||||
| To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security's fair value, the security will be valued at fair value by Putnam Management in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs. | ||||||
| To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount. | ||||||
| Forward currency contracts: The fund buys and sells forward currency contracts, which are agreements between two parties to buy and sell currencies at a set price on a future date. These contracts were used to hedge foreign exchange risk. | ||||||
| The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The fair value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in fair value is recorded as an unrealized gain or loss. The fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed when the contract matures or by delivery of the currency. The fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the fund is unable to enter into a closing position. | ||||||
| For the fund's average contract amount on forward currency contracts, see the appropriate table at the end of these footnotes. | ||||||
| Master agreements: The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the fund is held in a segregated account by the fund’s custodian and, with respect to those amounts which can be sold or repledged, is presented in the fund’s portfolio. | ||||||
| Collateral pledged by the fund is segregated by the fund’s custodian and identified in the fund’s portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund’s net position with each counterparty. | ||||||
| Termination events applicable to the fund may occur upon a decline in the fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the fund’s counterparties to elect early termination could impact the fund’s future derivative activity. | ||||||
| At the close of the reporting period, the fund had a net liability position of $4,570,089 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund at period end for these agreements totaled $4,304,800 and may include amounts related to unsettled agreements. | ||||||
| ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund's investments. The three levels are defined as follows: | ||||
| Level 1: Valuations based on quoted prices for identical securities in active markets. | ||||
| Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. | ||||
| Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement. | ||||
| The following is a summary of the inputs used to value the fund's net assets as of the close of the reporting period: | ||||
| Valuation inputs | ||||
| Investments in securities: | Level 1 | Level 2 | Level 3 | |
| Common stocks: | ||||
| Australia | $— | $16,986,119 | $— | |
| Canada | 9,053,146 | — | — | |
| Denmark | 26,724,657 | — | — | |
| France | 91,990,785 | — | — | |
| Germany | 81,733,862 | — | 26 | |
| Greece | 7,667,782 | — | — | |
| Hong Kong | — | 21,163,107 | — | |
| India | 15,078,706 | — | — | |
| Ireland | 33,939,137 | — | — | |
| Italy | 27,596,904 | — | — | |
| Japan | — | 160,541,929 | — | |
| Netherlands | 28,469,103 | — | — | |
| Norway | 8,252,565 | — | — | |
| Portugal | 12,765,223 | — | — | |
| Russia | 10,727,303 | — | — | |
| South Korea | — | 44,534,990 | — | |
| Spain | 14,896,682 | — | — | |
| Sweden | 1,849,666 | — | — | |
| Switzerland | 67,427,218 | — | — | |
| Taiwan | — | 25,031,906 | — | |
| United Arab Emirates | 8,981,537 | — | — | |
| United Kingdom | 104,833,168 | — | — | |
| United States | 22,711,532 | — | — | |
| Total common stocks | 574,698,976 | 268,258,051 | 26 | |
| Short-term investments | 930,000 | 6,516,518 | — | |
| Totals by level | $575,628,976 | $274,774,569 | $26 | |
| Valuation inputs | ||||
| Other financial instruments: | Level 1 | Level 2 | Level 3 | |
| Forward currency contracts | $— | $(3,453,647) | $— | |
| Totals by level | $— | $(3,453,647) | $— | |
| At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund's net assets and were not considered a significant portion of the fund's portfolio. | ||||
| The volume of activity for the reporting period for any derivative type that was held at the close of the period is listed below and was based on an average of the holdings of that derivative at the end of each fiscal quarter in the reporting period: | ||||
| Forward currency contracts (contract amount) | $611,700,000 | |||
| For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's Individual Investor Web site at www.putnaminvestments.com | ||||